You might have always looked at change as that inconsequential amount that only bulks up your wallet with the weight of coins. But what if spare change could actually help build your net worth?
Picture this, you have a cup of tea or coffee during work breaks thrice a day. Say, one cup costs you Rs 16 and you receive Rs 4 as change each time. By itself, Rs 4 doesn’t seem like much, does it? But if you add up Rs 4 x 3 times a day that makes it Rs 12. That’s nearly the cost of your next cup of tea. Let’s take this a little further.
Rs 12 x 30 days = Rs 360
That is the amount of your monthly phone recharge pack, probably.
Rs 12 x 365 days = Rs 4,380
That amount is more than any of your one-way flight tickets to most cities in the country would cost.
If you save your Rs 12 spare change every day for about 10 years, that would add up to Rs 43,800!
Think of all the things you could do with that amount. But this is not where it ends. If you go ahead and invest this amount and utilise the power of compounding, your spare change will begin contributing significantly to your wealth.
Investing your spare change
If you invest Rs 43,800 at an average return of even 8%, in 10 years that will amount to about Rs 94,561. That’s more than double your initial investment! The longer you stay invested, the more your returns will be as compared to your initial investment. Rs 43,800 will amount to Rs 1,38,941 in 15 years and in 20 years it will amount to Rs 2,04,150.
So you can grow your spare change of Rs 12 daily to over Rs 2 lakhs. That’s the power of change when clubbed with the power of compounding. The best part is you don’t even have to go out of your way to save that money or cut corners. By simply doing what you do every day and keeping aside your spare change, you can end up with a lump sum amount of money over time.
And all this only by saving your spare change from tea. But if you start saving spare change from every auto or cab ride, every grocery run, every time you shop for anything, you will have a substantial amount of money that will help you meet your financial goals.
Take a minute to think of some of your current short term and long term goals. It could be buying a car, travelling more often, renovating your home, or anything else. Just by using your spare change per month, which could amount to anywhere between Rs 1000 to Rs 2000 depending on your spending habits, you can meet these goals seamlessly.
How to start saving and investing little amounts daily
Now that you know the power your spare change holds, you must be left wondering how you can go about and make the most of it. Being mindful of saving spare change every day, especially when most of your transactions may be cashless, can be tricky. Even if you do manage to diligently keep track of your daily spare change and keep it aside each month, figuring out where to invest it could seem like another mountain to climb.
The good news is, with Appreciate, you don’t have to worry about any of this. You can just go about your daily spending as you would and we will take care of the rest of it. With our app, your spending gets tracked automatically. So every time you spend through your debit or credit card, we round up your transaction and invest your change for you. For instance, if you spend Rs 95 on groceries, we will round it up to Rs 100 and invest Rs 5 for you.
So, now, not only are you saving your spare change, but you are also investing each time you spend. Through our app, you can make use of various tools to maximise disciplined savings every single day. Your money is invested in the U.S. market to offer higher returns and diversify your portfolio.
Our app allows you to access the benefits of investing without needing large amounts of money or being well-versed with the way stock markets work. To know more about how change investing works, log on to www.appreciatewealth.com.
